New Line seems to have seriously underestimated the power of community and the ability of blogs and the web to provide a platform for that community to air its voice. The New York Times touches on the spat that has resulted in New Line splitting from Weta for future versions of Lord of The Rings.

“On the heels of the protest, reporters and entertainment bloggers called the studio to ask about the film’s fate. In what was once an insular club of power brokers and back-stabbers, the voices of outsiders–dancing across the globe at the speed of a modem–have begun to penetrate.”

Some advise to New Line:

Don’t hide behind the “legal defense”. It’s lame.

“We are in litigation with Wingnut Films, and have been unsuccessful despite a formal mediation, as well as discussions with Wingnut directly to settle the matter; therefore, we cannot comment at this point,” the studio said this week.

Communicate directly with the community you helped create. Do not rely on intermediaries like The New York Times.

Argue with evidence not hyperbole. That is what Jackson is doing to you and when the communications are direct you won’t win without it.